An inventory of the "frustrated" Jianghu behind the purchase and purchase of transnational pharmaceutical enterprises

"More and more small and beautiful companies will be accepted by the marketThey may not be large-scale, but they are very delicate, without high growth, but their profits are stableThey may be invisible champions of a segment industrySuch companies will be favored by more investors in the primary and secondary markets." In a recent forum, economist Guan Qingyou predicted, "I think it's more dangerous for companies that are too big to fail, or even those that can't stop expanding." < br / > like a product with a life cycle, when an enterprise develops to a certain stage, on the one hand, it has sufficient cash flow, on the other hand, it has the need to expand its business scope and reduce the pressure of competition, so it will choose the way of internal self construction or external M & A to "run the horse and encircle the land" and build its own "business empire"< br / > in the past, through M & A, how many M & A capitalists have been attracted by the enterprises at the peak timeFrom the perspective of global pharmaceutical history, M & A plays an important role in the process of establishing their global status, such as Novartis and PfizerIt is undeniable that moderate M & A can help enterprises expand the market rapidly, but the burden of excessive M & A on enterprises can not be ignored< br / > in the 1980s-1990s, sun Pharma, an Indian pharmaceutical company, became the largest generic pharmaceutical company in India through continuous expansion from a small pharmaceutical factoryUp to now, it has also been heavily indebted due to its crazy "buy buy" and its stock price has declined for five consecutive years< br / > according to it orange data, 212 M & A events occurred in the healthcare sector in 2019, involving a total amount of RMB 1303.2 billion, which has doubled both in terms of quantity and amount compared with that in 2018, and almost all of the past five years have changed at such a growth rate< br / > Image Source: it orange < br / > in the field of medicine, M & a still occupies an important positionHow to maintain large but not collapse through moderate M & A is a concern of M & a capitalIn theory, the reason for the failure of M & A is usually the improper decision-making, the poor integration of enterprises after M & A, or the high cost of M & Aif it is transnational M & A, it may be political risk< br / > it is also necessary to summarize experience from the actual battle of M & a failureRecently, fierce Pharma has counted 15 most concerned M & a "failure" cases in the past 10 years< br / > 01 Bayer / Monsanto is now Jinniu or "hot potato" < br / > transaction scale: US $63 billion < br / > announcement date: September 14, 2016 < br / > before the merger decision was made, Bayer is facing a two-way attack from Syngenta and China chemical, as well as Dow Chemical and DuPont Competitors have expanded their scale through transactions For Bayer, It is urgent to do large scale through M & A < br / > Monsanto has the business of genetically modified crop seeds and pesticides, as well as its strong strength in the United States It complements Bayer's crop science business and becomes the best choice for acquisition At that time, in terms of coordination, the trading partner was almost perfect < br / > however, the way of transaction is not smooth First, the quotation has been increased three times, and finally the transaction consideration is US $63 billion Then, after in-depth investigation by EU and US antitrust agencies, Bayer agreed to cut off a large number of assets from its competitor BASF at the cost of two years, and finally completed the merger in 2018 < br / > however, after the merger, Monsanto's famous herbicide, Nongda, suffered two cancer causing lawsuits and lost all of them, and was awarded compensation of US $89 million and US $80 million According to statistics, at present, there are more than 13400 lawsuits of Nongda in the United States JP Morgan roughly calculates that if Bayer seeks reconciliation now, the compensation amount may reach US $15-30 billion < br / > after the completion of the acquisition, investors in the secondary market are also dissatisfied Since the completion of the acquisition in June, Bayer's share price has evaporated by only 40%, equivalent to 38 billion euros, plus possible compensation, close to its current market value < br / > 02 Teva / Allergan patent drug "error" massacre < br / > transaction scale: US $40.5 billion < br / > announcement date: July 27, 2015 < br / > in 2015, Teva agreed to accept Elgin's patent drug Erez vigodman, then CEO of Teva, believed that the transaction was successful But he had little expectation that generic pricing scrutiny would intensify, and that competition would drive prices down dramatically, what market observers later called "mistakes." < br / > sure enough, after the transaction, the price of U.S generic drugs plummeted, and Teva cut its income many times and was burdened with debt related to the transaction Later, Wigman left, replaced by Schulz By mid-2019, Teva had cut 10000 jobs, leaving thousands unemployed < br / > 03 shire / baxalta bought "out of date" < br / > transaction scale: US $32 billion < br / > announcement date: January 11, 2016 < br / > also before the acquisition, shire faced the pressure of low-cost generic drugs and competitors' new drugs, resulting in the revenue of new drugs for rare diseases and hemophilia failing to meet the standards, and the stock price continued to fall In 2016, shire acquired baxalta with a record of 32 billion yuan, becoming the "first brother of rare diseases" However, in the first quarter after integration, the sales of blood products in shire fell by 6%, dragging the total sales down to 3% lower than the consensus < br / > in 2016, an industry analyst said that the "success of alternative methods" of hemophilia treatment could damage baxalta's business He predicted that about 40% of them would be directly hit by emerging therapies, including RNA interference technology products, gene therapy and Roche's first-class antibodies At the end of 2017, Fleming ornskov, then chief executive of shire, admitted that baxalta was lagging behind in terms of treatment < br / > 04 Johnson & Johnson / actelion "impulse" marriage < br / > transaction scale: 30 billion US dollars < br / > announcement date: June 16, 2017 < br / > beat Sanofi with 30 billion and a "gambling" heart, opening up the "lingering" with actelion As a result of potential competition, the cost of actelion was pushed up, and Johnson initially intended to withdraw, only to see Sanofi offer < br / > later, because Sanofi tried to reduce and change the terms, actelion proposed to Johnson & Johnson again But in the view of svbleerink analysts, the final valuation is not reasonable at all It can be said that the transaction is a failure, and will not generate value, but will damage the price, about $15 billion < br / > actelion brought Johnson & Johnson the best-selling drugs for pulmonary hypertension, traceer, opsumit and uptravi In January 2017, opsumit failed in the phase 3 trial of patients with Eisenmenger syndrome In April 2018, Johnson & Johnson gave up the follow-up research and development of uptravi In January 2019, FDA rejected opsumit's bidding application < br / > 05 package sale after myopia of Bayer / Merck consumer health project < br / > transaction scale: US $14.2 billion < br / > announcement date: May 6, 2014 < br / > through the US $14.2 billion acquisition of Merck & Co.'s consumer health business, to obtain a stable source of income, to consolidate its leading position in the world of over-the-counter drugs, seems to be a good business < br / > but only four years after the acquisition, two of the company's star product lines, babysitter sunscreen and Dr scholl's foot care drugs, were significantly restructured, with Bayer writing off about $3 billion < br / > analysts pointed out that Shuibao is a strong brand in the United States, ranking the third with 13.6% market share, but its sales volume has declined for four consecutive years, and it was sold by Bayer in a package of $550 million in 2019 Several other OTC brands are not much better, for example, claritin, an allergy solution, fell 6.3% after adjusting last year < br / > 06 Sanofi / biostativ undervalued competition < br / > transaction size: 11.6 billion US dollars < br / > announcement date: January 22, 2018 < br / > before the decision of acquisition, Sanofi has been plagued by competition and price pressure, and finally acquired biostativ with 11.6 billion US dollars in January 2018, bringing ellicate and other listed hemophilia therapies < br / > at that time, it seemed logical, but Sanofi underestimated the intensity of the competition in the future In December of the same year, hemlibra, the Roche a hemophilia heavyweight drug, was approved to go on the market The sales of Q1 and eloctate in 2019 were 14.7% lower than the market expectation Analysts attributed to the intensified competition Sanofi wrote down $2 billion on the drug in the second quarter < br / > 07 Gilead / kit too much money "zero value"? < br / > transaction size: US $11.9 billion < br / > announcement date: August 28, 2017 < br / > after the unprecedented success of hepatitis C drugs sovaldi and harvoni, Gilead has abundant cash flow An analyst once described that for Gilead, the biggest problem in everyone's mind is who you want to buy < br / > in 2017, Geely acquired kit for us $11.9 billion, which was listed by leerink partners analysts as the worst deal in the past decade, and pointed out that the group of deals was "zero value" < br / > now, two years from the acquisition, in the latest quarter, the only approved product of kite, yescarta, has only $118 million in global sales, far from the sales revenue of up to $2 billion predicted by analysts when approving the drug But gillid thinks it's too early to make a conclusion < br / > 08 Amgen / Onyx is not strong enough < br / > transaction size: US $10.4 billion < br / > announcement date: August 25, 2013 < br / > Amgen has a unique opportunity to add value to kyrolis, and the product is still in the early stage of release and promising stage, said Bob bobdway, CEO of Amgen in a statement < br / > in 2013, Amgen acquired Onyx, and its core trading product is kyrolis As of the first three quarters of this year, kyrolis has global sales of $778 million, which is expected to break the heavyweight level in 2019 But over the past six years, the star product has contributed $4.19 billion in revenue, and its competitors are growing exponentially and gaining a blockbuster status In 2016, kyrolis also missed the opportunity to enter the first-line treatment < br / > 09 is EBV / stemcentrx lucky or data < br / > transaction scale: US $10.2 billion < br / > announcement date: April 28, 2016 < br / > rova-t of stemcentrx was regarded as the first target treatment of small cell lung cancer and bought by EBV At that time, EBV hoped that it would obtain preliminary approval in 2018, and the peak sales could reach US $5 billion, which seemed to be a good transaction < br / > the phase 1 study in 2016 showed that the objective response rate of the drug was 39%, and the life span of patients was prolonged by 5.8 months However, in the phase 2 clinical trial in 2018, the objective response rate was only 16%, and the median total survival period was 5.6 months < br / > however, bad news is pouring in In December 2018, eberver found that patients receiving standard chemotherapy actually lived longer than those in the rova-t group In February, the company wrote off $5.1 billion related to the acquisition of stemcentrx < br / > 10 Merck / stereoscopic failed to withdraw in time < br / > transaction scale: 8.4 billion US dollars < br / > announcement date: December 8, 2014 < br / > in the early morning of December 8, 2014, Merck finalized a transaction of 8.4 billion US dollars, but in the afternoon, the US Court ruled that the key patent of cupicin, the No.1 drug in the transaction, was invalid < br / > Merck chose to continue the acquisition, but analysts believe that it may have overpaid $2-3 billion Now, Cubicin's sales are suffering from the ensuing general competition In the first three quarters of 2019, the drug's revenue dropped 28% to US $207 million, and the revenue at the time of acquisition was more than US $700 million < br / > 11 alexion / synageva sales fraud < br / > transaction size: US $8.4 billion < br / > announcement date: May 6, 2015 < br / > soliris is the world's best-selling orphan drug, which has brought rich cash flow to alexion pharmaceutical In 2015, alexion decided to devote itself to another blockbuster kanuma, paying a premium of 135% to synageva's share price Surprisingly, kanuma's sales in the third quarter were only $28.4 million, up 12% year-on-year, compared with the peak sales of $1 billion to $1.5 billion touted by a group of analysts < br / > alexion's